Meralco expanding prepaid electricity scheme pilot testing

MANILA, Philippines—Manila Electric Co. (Meralco) is shelving certain projects worth P293 million to be able to focus on the large-scale pilot testing of the prepaid electricity scheme.

In line with this, Meralco had asked the Energy Regulatory Commission to immediately approve its plan to put off those projects.

In its filing, Meralco said it would need P253 million for the  proposed Implementation Services of the Prepaid Electricity Management System project (IS-PEMS), which will enable the utility to lay down the necessary technology and infrastructure that will allow the seamless implementation of the scheme.

“Given that the proposed project (IS-PEMS) was not planned, thus was not factored into Meralco’s capital expenditure projects for third regulatory period, Meralco is constrained to substitute some of its approved major capital expenditure projects with IS-PEMS,” the company said.

The projects that will be shelved include the construction of Meralco business centers and offices.

The IS-PEMS project will have two major components: the external integration with third-party applications and internal integration with other Meralco information system infrastructures.

“Without the IS-PEMS, consumers will have very limited options in purchasing prepaid credits since there is no integration with established, numerous and familiar third-party vending systems; no access from home through the Internet and the convenience of electronic loading would not be possible. This means consumers would not be able to monitor their account balances when and where they want,” Meralco explained.

The power firm said it would be easier for Meralco to expand the pilot tests beyond the approved 40,000 prepaid meter rollout that was earlier approved by the ERC, without additional system-related costs.“Meralco is hoping to start implementing the prepaid retail electricity scheme to realize commercial pilot of the system by July 2012 at the earliest and for full commercial roll out by 2013,” it added.

In an earlier interview with the Inquirer, Alfredo S. Panlilio, senior vice president and head of customer retail services at Meralco, said the viability of the prepaid scheme would be tested among 40 households in Angono, Rizal. From this number, Meralco is targeting to increase the number of participants to as many as 400 during the six-month pilot testing period.—Amy R.Remo